USD/JPY drops to fresh weekly lows below 109.70
|- USD/JPY came under strong bearish pressure in American session.
- US Dollar Index extends slide below 92.50 ahead of the weekend.
- 10-year US Treasury bond yield is down more than 4% on Friday.
The USD/JPY pair broke out of its daily range during the American session and dropped to its lowest level in a week at 109.65. As of writing, the pair was down 0.65% on the day at 109.67.
Falling US T-bond yields drag USD/JPY lower
The sharp decline witnessed in the US Treasury bond yields and the broad-based USD weakness is causing USD/JPY to stay under strong bearish pressure ahead of the weekend. Currently, the benchmark 10-year US Treasury bond yield is losing 4.5% on a daily basis at 1.3%.
The data from the US showed on Friday that the University of Michigan's Consumer Sentiment Index plunged to its lowest level in nearly 10 years at 70.2 in August's advanced reading. This print missed the market expectation of 81.2 by a wide margin and forced the greenback to weaken against its rivals. At the moment, the US Dollar Index is losing 0.56% on the day at 92.47.
Breaking: US UoM Consumer Sentiment Index falls sharply to 70.2 in August.
With this recent slump, USD/JPY now remains on track to end the week in the negative territory. There won't be any other data releases featured in the US economic docket in the remainder of the day and USD/JPY is likely to close below the key 110.00 psychological level.
Technical levels to watch for
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